Graduates found wanting as job posts rise

Graduate job vacancies will rise this year but employers anticipate difficulties filling them, according to the Association of Graduate Recruiters (AGR).

Today's AGR survey predicts graduate vacancies to rise by 16.4%, despite current economic fears. Only pharmaceutical and insurance firms are not predicting growth.

And salaries are expected to increase modestly by 2.1%, bringing the median salary for new graduates to £24,000. Fewer companies are giving graduates "golden hellos" - 33% down from 35.4% in 2006 - and these are predicted to be around £2,000 in 2008.

There has also been an increase in the recruitment of graduates from ethnic minorities. In 2007, over a quarter (26.7%) of graduates came from minority ethnic backgrounds, up from 15.1% in 2006.

The highest ethnic group was Indian (19.3%), followed by Chinese (18.2%) and Black African (13.7%, up from 7.7% in 2006).

The survey attributed this rise to extensive and effective marketing and targeting by employers to improve the ethnic mix of their workforces.

The twice-yearly survey of public and private sector employers into the status of graduate recruitment showed a rise in vacancies for the fifth year running despite uncertainties in the UK economy.

Of the 217 employers surveyed late last year, two-thirds (67%) envisaged difficulties in filling all vacancies, because graduates are becoming increasingly selective and applicants lack the right skills.

Over half the employers surveyed (55.9%) said not enough candidates held the right skills, while 43.4% said there were not enough applicants with the right qualifications.

A quarter of recruiters are now actively marketing their UK vacancies to overseas graduates in order to "recruit the very best talent that is available".

AGR's chief executive, Carl Gilleard, said: "The findings of our 2008 survey will make encouraging reading for graduates entering the workforce this year, as the market appears to be as buoyant as it has been for the past five years.

"Concerns about elitism within graduate recruitment also seem to be a thing of the past with the profile of graduates starting roles in 2007 being more reflective of the diverse make up of UK graduates.

"However, the anticipated recruitment shortfall makes worrying reading, particularly in certain sectors, where recruiters fear they will not fill a significant number of the vacancies available.

Gilleard said recruiters are becoming increasingly discerning and will not lower their standards to fill these positions.

"The fact that employers are beginning to widen their recruitment field outside of the UK may have wider long-term implications for the UK economy, and both employers and graduates may have to amend their expectations in order to narrow this gap. "There is a strong message in these results for those seeking a graduate post in 2008 - don't delay, start applying for posts straight away and make sure that you prepare your applications carefully to ensure you market yourself well. Despite the growth in vacancies, it is still a very competitive and demanding market out there!"

AGR suggests more research is needed into the 3.5% fall (to 39.1%) in the proportion of women graduates recruited in 2007. This is partly but not wholly explained by the survey not covering medical and teaching careers, it said.